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Appreneur: Secrets to Success in the App Store by Taylor Pierce

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Chapter     4

Generating Revenue from Various Business Models

As you learn more about the world of apps, you begin to understand that different types of apps require different business models. Most amateur appreneurs think that the only way an application can generate revenue is with the paid model (pay a flat, one-time fee to download the application; $0.99, $1.99, $2.99, and so on). This is the simplest strategy, but it doesn’t always produce the results you desire. Recently, I have noticed that free apps with in-app purchases, or “freemiums,” have dominated the market. Here is why: people do not hesitate to download free apps. You will generally get between 50 and 100 free downloads per paid download. That means (at the high end), if fifty ...

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